A lot of homes go on the market in the springtime. Sellers know that buyers are more likely to venture out when the weather is nice, and buying a home in the spring means parents can move their families before school starts up again at the end of summer. It’s a great time to look around at what’s available in your price range. The problem is, everyone else has the same idea.
Because demand is high this time of year, the chance of getting into a bidding war with other buyers is greater. Sometimes, these escalating offers result in homes selling for more than the market can support, which means that the mortgage loan appraisal comes in lower than the purchase price. This sends the buyer and seller back to the negotiation table, which might result in a larger down payment or even cancellation of the contract. If you find yourself in a bidding war, you might want to consider other houses to avoid this type of situation.
Develop a strategy with your realtor. If you’re willing to look at several homes because you want to move soon, look in the spring. If you aren’t in a rush, keep your eyes open during the “offseason” when there is less traffic. In fall and winter, buyers are more likely to find aggressive sellers who, for whatever reason, need to move quickly and are more willing to negotiate.
There are always exceptions to these trends, so don’t let time of year completely guide your decision. Interest rates can trump the season. When rates are low, like they are now, it’s a good time to take out a loan, no matter what the weather’s like. Just be sure you’re financially ready for it.
Check out all of our posts in our home buying and selling series!
The blog and its opinions are expressly that of its author and does not convey the opinions or strategies of the Credit Union and should not be considered financial advice. CommunityAmerica’s Mortgage offers are subject to credit approval and terms may vary based on conditions.